Texas Insurance Code

§ 557.003 — LENDER'S RELEASE OR REFUSAL TO RELEASE INSURANCE PROCEEDS

IN § 557.003Title 5. PROTECTION OF CONSUMER INTERESTS · Part C. DECEPTIVE, UNFAIR, AND PROHIBITED PRACTICES · Ch. 557. INSURED PROPERTY SUBJECT TO SECURITY INTEREST · Art. A. INSURANCE PROCEEDS HELD BY LENDER PENDING REPAIR OF RESIDENTIAL REAL PROPERTY

Statute text

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Not later than the 10th day after the date a lender receives from the insured a request for release of all or part of the insurance proceeds held by the lender, the lender shall:

(1)if the lender has received sufficient evidence of the insured's compliance with the requirements specified by the lender under Section 557.002 for release of the proceeds, release to the insured, as requested, all or part of the proceeds; or

(2)provide notice to the insured that explains specifically:

(A)the reason for the lender's refusal to release the proceeds to the insured; and

(B)each requirement with which the insured must comply for the lender to release the proceeds.

Legislative history

Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005.